PM Gillard sells Canberra unit

PRIME Minister Julia Gillard has sold her Canberra apartment for $615,000.

The sale was declared this week in an update to the prime minister's parliamentary pecuniary interest register.

She bought the two-bedroom apartment in Wentworth Avenue, Kingston, in December 2007 for $530,000 and used it before moving into The Lodge in 2010.

"Attention to detail is evident in every room of this apartment," the sales brochure reads.

While the sale occurred in October last year, it was not formally reported on the register because of a lengthy settlement period.

The prime minister also owns a home in her Melbourne electorate.

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Relief for Vic firies ahead of hot weekend

FIREFIGHTERS are hoping for a little relief on Friday as winds ease before a day of "traditional fire weather" on Saturday.

State control centre spokesman Graeme Baxter said conditions would continue to be hot and dry on Friday but lighter winds would mean less fire activity.

"(We're expecting) potentially a lighter wind tomorrow before some increasing wind over the weekend," Mr Baxter told AAP on Thursday evening.

Hot and windy conditions sparked spot fires outside containment lines of the two major bushfires burning out of control in Victoria on Thursday.

Watch and act warnings remained in place on Thursday evening for the Glenfalloch area, which is under threat from the Aberfeldy fire, east of Melbourne, and the Hotham Heights and Dinner Plain area in the Alpine region.

But the state control centre said there was no immediate threat to property.

Mr Baxter said the spot fires were "doing okay".

"Towards the end of the day generally conditions became a little calmer, humidity rises so the fire activity does decrease.

"We'll just keep monitoring it."

The Bureau of Meteorology has predicted maximum temperatures of 30-plus across the state until Saturday.

Victoria's Fire Services Commissioner Craig Lapsley warned that the week of hot days would lead to extreme and severe fire danger in parts of Victoria.

"Saturday will be a day that is more the traditional fire weather," Mr Lapsley said.

"It's the day that will be hot, it will be northerly winds, it will be strong winds but the critical factor is it will have a southwesterly change which will see the wind change move through the state in one day."

He said over the last couple of weeks the changes had moved through over two days.

"As we know in Victoria we lose more property, we have a bigger impact after the change than before the change."

He said people should be prepared and cautioned against fatigue following six weeks of fire alerts.

"Some people say, 'Well I've heard the story' and we say it again, 'Stay focused.'"

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Miner to plead guilty over sacred site

A MINING company says it will plead guilty to damaging an Aboriginal sacred site in the Northern Territory, but still plans to contest two charges of desecrating it.

OM (Manganese) Ltd, a subsidiary of OM Holdings Ltd, is facing two counts of desecrating an Aboriginal sacred site, and one count of damaging the site.

The Aboriginal Areas Protection Authority (AAPA) has alleged the manganese miner damaged and desecrated a site at Bootu Creek, about 170km north of Tennant Creek.

Cracks were allegedly detected around the site on July 7, 2011, but despite its imminent collapse the miner set off a blast two weeks later, which split the rocky outcrop in half, AAPA alleges.

In court in Darwin on Thursday, counsel for OM (Manganese) Peter Quinlan SC said the miner would plead guilty to the count of damaging the site.

"The defendant intends to plead guilty to count two," Mr Quinlan said.

Such an offence carries a maximum penalty of about $130,000, depending on when it is determined that the damage occurred.

But Mr Quinlan indicated the company would fight the charges of desecrating the site.

The site at Bootu Creek was said to have immense spiritual significance to several groups of Aboriginal people and was known as Two Women Sitting Down.

Magistrate Sue Oliver instructed both sides to return to court on February 20, with a trial pencilled in to begin on March 4.

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NT and Canberra clash over booze curbs

THE Northern Territory and federal governments are again butting heads over problem drinking in the territory.

Federal Indigenous Affairs Minister Jenny Macklin revealed on Wednesday she had written to NT Chief Minister Terry Mills requesting an assessment of how two pubs in Alice Springs were being run.

She said there was too much evidence of antisocial behaviour and harm to the community connected to the hotels.

But NT Business Minister Peter Chandler on Thursday rejected the request.

"To tell us to target hotels who are already compliant with liquor licensing regulations and who we have a good working relationship with is nonsense," Mr Chandler said.

"This is completely inappropriate and I am requesting a meeting with Jenny Macklin," he said in a statement.

Alice Springs has been identified as a hot spot for violence in the Northern Territory.

On Wednesday Prime Minister Julia Gillard criticised the NT government's scrapping of the territory's Banned Drinkers Register.

"The government will take action in response to any irresponsible policy changes that threaten to forfeit our hard-won gains," Ms Gillard said.

Those comments drew a stern rebuke from Acting NT Chief Minister Robyn Lambley, who said Canberra should listen to the NT on dealing with alcohol, not the other way around.

The Banned Drinkers Register forced people buying take-away alcohol to provide photo identification, which is checked against a list of problem drunks, who are prevented from making the purchase.

It is not clear what action Ms Macklin will take if the NT government ignores her request to investigate the two pubs in Alice Springs.

She told ABC television it remained to be seen what would happen if nothing was done.

"There is serious harm taking place. Let's act to deal with it," she said.

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Potential jurors discharged in Patel case

Five potential jurors are being questioned further about possible bias against Jayant Patel. Source: AAP

FIVE potential jurors are being questioned further about possible bias against former Bundaberg surgeon Jayant Patel, on the first day of his manslaughter trial.

Patel has pleaded not guilty to the manslaughter of Mervyn Morris, 75, in June 2003.

As part of a lengthy selection process on Wednesday, 12 jurors and three reserve jurors were given a questionnaire in the Supreme Court of Brisbane to determine if they could be impartial.

The questions were about pre-trial publicity and prior knowledge of the allegations against Patel, as well as the jurors' ability to judge the case only on the evidence placed before them during the trial.

After reviewing their answers, defence barrister Ken Fleming wanted to question five of the potential jurors further to clarify their answers.

Patel's trial has been set down for two weeks.

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Flat retailing trend confirmed by data

RETAIL spending flattened out over the second half of 2012.

It's hardly a controversial observation, but figures from the Australian Bureau of Statistics (ABS) on Wednesday confirm the plateau extended through to the end of the year.

The figures won't surprise the Reserve Bank of Australia (RBA), which on Tuesday said "a return to the very strong growth (in consumer spending) of some years ago is unlikely".

The value of turnover in retail establishments - which excludes motor vehicle and fuel sellers but includes on-line sellers registered in Australia - fell by 0.2 per cent in December, after adjustment for regular seasonal variations.

It was the third small fall in a row; the first three-in-a-row since the summer of 1999-2000.

With these monthly estimates a fall could always be the result of changes in prices.

But the quarterly estimates which adjust for price changes suggest otherwise.

In real terms, turnover rose by an inconsequential 0.1 per cent in the three months ending December 31 after a 0.2 per cent fall in the previous quarter.

In other words, there was a fall in the volume of goods and services sold by retailers turnover over the second half of 2012.

This represents a rather abrupt halt after a rise of 2.8 per cent, well above the historical average, in the first half of the year.

There is more than one likely contributor to the pause.

One is slow employment growth, with the latest trend estimates from the ABS showing very slow monthly growth of 7,000, compared with a recent peak of more than 19,000 a month early last year.

Slower growth in jobs means slower growth in disposable income.

Another is the decline in housing construction, particularly in the volume of work done on alterations and additions, over the second half of 2011 and the first half of 2012.

Housing activity tends to feed into retail spending.

Then there is the emergence of more conservative spending habits, including a preference to reduce debt, among households since the global financial crisis that came to a head in 2008.

Each of these factors probably plays a role in the flat trend in retailing since mid-2012.

And, because they all still apply to a significant extent, it's unlikely that retailing will pick up strongly in the first half of 2013.

Even so, a firmer share market and signs of a rally in housing prices, along with a likely ongoing impact of recent interest rate cuts, suggest some scope for growth rather than the flatlining now evident in the data.

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China radar-lock on Japan ship 'dangerous'

THE radar lock that a Chinese frigate put on a Japanese warship is "dangerous", Japan's Prime Minister Shinzo Abe says, as tensions in a territorial row heighten.

"It was a dangerous act that could have led to an unpredictable situation," Abe told parliament on Wednesday.

"It is extremely regrettable. We strongly ask for their self-restraint in order to avoid an unnecessary escalation."

Abe's comments come a day after his defence minister announced weapon-targeting radar had been directed at the Japanese vessel in international waters of the East China Sea last week.

The move marks the first time the two nations' navies have locked horns in a dispute that has some commentators warning about a possible armed conflict.

US State Department spokeswoman Victoria Nuland said the US was "concerned".

"With regard to the reports of this particular lock-on incident, actions such as this escalate tensions and increase the risk of an incident or a miscalculation, and they could undermine peace, stability and economic growth in this vital region," she said.

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8.0 quake hits Solomons, generates tsunami

A TSUNAMI marine alert remains in New Zealand following a magnitude 8.0 earthquake in the Solomon Islands, though it is now confined to the west coasts from Taranaki to Milford Sound.

Civil Defence issued an upgraded tsunami threat at 5.20pm on Wednesday, warning people to stay off the beach and off coastal waters due to the possible marine threat of a tsunami of between 0.2m and 0.9m.

The warning initially applied to the entire west coast of both the North and South islands, as well as the eastern coast stretching from Northland to Gisborne and the southern coast of the South Island and around to Dunedin.

But after further scientific analysis, Civil Defence says the tsunami heights are likely to be at their highest from Taranaki to Milford Sound.

People in these areas are advised to stay out of the water, stay off beaches and shore areas, not to go sightseeing, to share information with family and friends, listen to radio and television for updates and follow Civil Defence instructions.

"If there's boating activities, people who are swimming, and particularly people in estuaries and restricted harbours, they could experience stronger currents and tidal activity which could be a danger to them," Civil Defence director John Hamilton said.

Civil Defence says historical experience and modelling experience suggest that the largest waves will be about two to eight hours after the first waves arrive.

The alert extends into the early hours of Thursday.

New Zealand's alert remains despite the Pacific Tsunami Warning Centre in Hawaii cancelling Tsunami warnings and alerts for much of the Pacific Islands before 6pm.

Media reports suggest five people have died in the Santa Cruz islands, part of the Solomon Islands, and major damage has been caused to three villages on Santa Cruz island.

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Oppn takes aim at economy as parly starts

Former Labor leader Kevin Rudd has rejected suggestions of a leadership comeback. Source: AAP

THE federal opposition used the first parliamentary sitting since the budget surplus was dumped to attack the government's economic record, as Labor declared it was putting jobs first.

The economy dominated the first question time of the election year on Tuesday as Prime Minister Julia Gillard unveiled her new-look frontbench, featuring Attorney-General Mark Dreyfus and Defence Materiel Minister Mike Kelly.

But the day for Labor wasn't all clear sailing after new testimony to a NSW corruption inquiry into the dealings of the family of former NSW Labor powerbroker Eddie Obeid referred to federal ministers Bill Shorten and Tony Burke.

With the coalition holding a clear lead over Labor in the polls, Opposition Leader Tony Abbott had earlier told the first joint party room meeting of 2013 MPs could be "confident and optimistic but never arrogant" about victory.

Mr Abbott said all members needed to be strong and measured in their criticism of the government and avoid any "personal snideness".

The warning appeared to be quickly forgotten as question time began.

"I was hoping everyone had had a nice break and we could all play nicely, but obviously not," Speaker Anna Burke said during a rowdy bout of questioning.

Shadow treasurer Joe Hockey was prevented from tabling two large bundles of documents detailing more than 500 occasions when Ms Gillard and Treasurer Wayne Swan promised a budget surplus for 2012/13.

"This is what Labor does - it completely trashes the joint, tries to claim the high moral ground and leaves Australians to pick up the pieces and pay the bills," Mr Hockey told parliament.

Mr Hockey, who has lost weight through stomach surgery and a new fitness and diet regime, had earlier told his party room the coalition had a plan to bring the budget back to surplus.

"If I'm prepared to do this to my waist, think what I'm prepared to do about Labor waste," he said.

Ms Gillard told parliament the government was facing huge writedowns in taxation revenues.

"It needs to be accounted for, obviously by the government, but it also needs to be accounted for by the opposition if it wants to be taken seriously in any sort of economic debate," Ms Gillard said.

She said Labor was focusing on jobs and growth in the economy.

The government had a strong track record of job creation, but also needed to consider policies such as the National Disability Insurance Scheme which would "protect people from the risks of a lifetime".

As well, Mr Shorten and Mr Burke became the first federal ministers to be mentioned at the NSW Independent Commission Against Corruption hearing in Sydney.

Mr Obeid said he had extended hospitality at his family's ski lodge at Perisher to many political friends including the ministers.

Mr Burke said he had stayed in an apartment owned by Mr Obeid on two occasions between 2004 and 2006 - before federal Labor won office.

Mr Shorten's spokesman told AAP the minister had never been to Perisher "and cannot ski".

The opposition also on Tuesday argued government agencies shouldn't sign major contracts because Labor was effectively in "caretaker" period since the election date was announced last week.

Mr Dreyfus said the caretaker period would not start until the lower house was dissolved in August, adding the coalition was being "irresponsible".

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RBA ready to cut rates, just not yet

THE central bank is ready to cut the cash rate again if needed but it left many consumers and businesses disappointed after its first board meeting of the year.

However, the Reserve Bank of Australia's (RBA) decision to leave the cash rate unchanged at three per cent on Tuesday did coincide with two pieces of upbeat data - the biggest quarterly rise in house prices in over two years and a sharp narrowing of the nation's trade deficit.

RBA governor Glenn Stevens said the board judged it was "prudent" to hold steady at this stage.

He said interest rate cuts over the past year or so were appropriate, given inflation is likely to be consistent with the two to three per cent target and with economic growth likely to be a little below trend over the coming year.

"The inflation outlook, as assessed at present, would afford scope to ease policy further, should that be necessary to support demand," Mr Stevens said in a statement.

Business groups believe the central bank should have acted now.

Financial markets are fully priced for a 25 basis point cut to an all-time low of 2.75 per cent by May.

However, Michael Blythe, the chief economist of the nation's biggest home lender, the Commonwealth Bank of Australia, believes that while the RBA has a bias to ease further, the cash rate will remain at three per cent during 2013.

He said previous rate reductions were to relieve some of the pain from a strong Australian dollar and support the transition to the non-mining parts of the economy.

"It may not be quite 'mission accomplished' but a lot of progress has been made," Mr Blythe said in a note to clients.

Treasurer Wayne Swan said homeowners were still better off by $5000 a year on a $300,000 mortgage than they were when the government came to power in 2007.

"The RBA has cut rates repeatedly over the last 15 months, partly in response to global volatility, but also because the government has been running a very strong fiscal policy," he told parliament, to jeers from opposition MPs.

Mr Stevens said downside risks in the global economy appear to have abated "for the moment at least".

Trade Minister Craig Emerson said the latest trade data confirmed the early signs of a global economic recovery and the continued strength of Asia.

The trade balance of goods and services for December was a seasonally adjusted deficit of $427 million in December, compared with a revised $2.79 billion shortfall in November.

This reflected a six per cent fall in imports and a three per cent rise in exports.

"Australian exporters are well-placed to benefit from the expected strengthening of demand in the Asian region," Dr Emerson said in a statement.

At the same time, the Australian Bureau of Statistics' house price index for the eight capital cities rose 1.6 per cent in the December quarter, the largest quarterly rise since June 2010.

Prices rose 2.1 per cent over the year.

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